Scorpio Tankers Inc. Announces Financial Results for the Fourth Quarter of 2016 and Declaration of a Quarterly Dividend
MONACO -- (Marketwired) -- 02/13/17 -- Scorpio Tankers Inc. (NYSE: STNG) ("Scorpio Tankers," or the "Company") today reported its results for the three months and year ended December 31, 2016 and declaration of a quarterly dividend.
Results for the three months ended December 31, 2016 and 2015
For the three months ended December 31, 2016, the Company's adjusted net loss (see Non-IFRS Measures section below) was $29.4 million, or $0.18 basic and diluted loss per share, which excludes a $0.2 million, or $0.00 per basic and diluted share, unrealized loss on derivative financial instruments. For the three months ended December 31, 2016, the Company had a net loss of $29.7 million, or $0.18 basic and diluted loss per share.
For the three months ended December 31, 2015, the Company's adjusted net income was $36.3 million (see Non-IFRS Measures section below), or $0.22 basic and $0.21 diluted earnings per share, which excludes (i) a $0.7 million write-off of deferred financing fees, (ii) a $0.7 million write-off of deposits made for options to construct MR product tankers that expired unexercised and (iii) a $0.7 million unrealized loss on derivative financial instruments. The adjustments resulted in an aggregate increase of the Company's net income by $2.1 million, or $0.01 basic and diluted earnings per share. For the three months ended December 31, 2015, the Company had net income of $34.2 million, or $0.21 basic and $0.20 diluted earnings per share.
Results for the years ended December 31, 2016 and 2015
For the year ended December 31, 2016, the Company's adjusted net loss (see Non-IFRS Measures section below) was $10.7 million, or $0.07 basic and diluted loss per share, which excludes (i) a $2.1 million loss on sales of vessels, (ii) an aggregate write-off of $14.5 million of deferred financing fees, (iii) a $1.4 million unrealized gain on derivative financial instruments and (iv) a $1.0 million aggregate gain recorded on the repurchase of $10.0 million aggregate principal amount of the Company's Convertible Notes. The adjustments resulted in an aggregate decrease of the Company's net loss by $14.2 million, or $0.08 per basic and diluted share. For the year ended December 31, 2016, the Company had a net loss of $24.9 million, or $0.15 basic and diluted loss per share.
For the year ended December 31, 2015, the Company's adjusted net income was $221.3 million (see Non-IFRS Measures section below), or $1.37 basic and $1.21 diluted earnings per share, which excludes (i) a gain of $1.2 million resulting from the sale of the Company's investment in Dorian, (ii) a gain of $1.4 million resulting from the early termination of a contract on a time chartered-in vessel, (iii) a reserve of $1.4 million for a pool bunker supplier in bankruptcy, (iv) a $2.7 million write-off of deferred financing fees, (v) a $0.7 million write-off of deposits made for options to construct MR product tankers that expired unexercised, (vi) a net loss of $35,000 related to the gains and losses on the sales of four vessels, (vii) a $1.3 million unrealized loss on derivative financial instruments and (viii) a gain of $46,000 resulting from the repurchase of $1.5 million aggregate principal amount of the Company's Convertible Notes. The adjustments resulted in an aggregate increase of the Company's net income by $3.5 million or $0.02 basic and $0.01 diluted earnings per share. For the year ended December 31, 2015, the Company had net income of $217.7 million, or $1.35 basic and $1.20 diluted earnings per share.
Declaration of Dividend
On February 13, 2017, the Company's Board of Directors declared a quarterly cash dividend of $0.01 per share, payable on or about March 30, 2017 to all shareholders as of February 23, 2017 (the record date). As of February 10, 2017, there were 174,629,755 shares outstanding.
Diluted Weighted Number of Shares
Diluted earnings per share is determined using the if-converted method. Under this method, the Company assumes that the Convertible Notes (which were issued in June 2014) are converted into common shares at the beginning of each period and the interest and non-cash amortization expense associated with these notes of $5.4 million and $21.7 million during the three months and year ended December 31, 2016, respectively, are not incurred. Conversion is not assumed if the results of this calculation are anti-dilutive.
For the three months and year ended December 31, 2016, the Company's basic weighted average number of shares were 161,868,161 and 161,118,654, respectively. The weighted average number of shares, both diluted and under the if-converted method, were anti-dilutive for the three months and year ended December 31, 2016 as the Company incurred a net loss. As of the date hereof, the Convertible Notes are not eligible for conversion.
Summary of Recent and Fourth Quarter Significant Events
- Below is a summary of the average daily TCE revenue and duration for voyages fixed thus far in the first quarter of 2017 as of the date hereof:
- For the LR2s in the pool: approximately $16,000 per day for 61% of the days
- For the LR1 in the pool: approximately $14,500 per day for 50% of the days
- For the MRs in the pool: approximately $14,300 per day for 53% of the days
- For the ice-class 1A and 1B Handymaxes in the pool: approximately $16,500 per day for 51% of the days
- Below is a summary of the average daily TCE revenue earned during the fourth quarter of 2016:
- For the LR2s in the pool: $13,966 per revenue day
- For the LR1 in the pool: $14,856 per revenue day
- For the MRs in the pool: $11,677 per revenue day
- For the Handymaxes in the pool: $10,461 per revenue day
- Signed a non-binding term sheet to sell and leaseback three MR tankers to an unaffiliated third party. Upon completion, the Company's liquidity is expected to increase by approximately $29.0 million after the repayment of debt.
- Received a commitment for a credit facility of up to $81.4 million with a final maturity of December 2021 from DVB Bank SE to refinance a previous facility with DVB Bank SE, which financed four product tankers.
- Received loan commitments from Macquarie Bank Limited (London Branch), DekaBank Deutsche Girozentrale, The Export-Import Bank of Korea ("KEXIM") and Garanti-Instituttet for Eksportkreditt ("GIEK") for a total loan facility of up to $172.0 million. The proceeds of the facility are expected to be used to partially finance eight MR product tankers that are currently under construction at Hyundai Mipo Dockyard Co., Ltd. ("HMD").
- Took delivery of STI Selatar, an LR2 product tanker that was under construction at Sungdong Shipbuilding and Marine Engineering Co., Ltd. ("SSME"), in February 2017.
- Upsized the Company's BNP Paribas Credit Facility by $27.6 million, the proceeds of which were used to refinance the existing indebtedness on two MR product tankers.
- Executed a loan facility with HSH Nordbank AG which was used to refinance the existing indebtedness on two MR product tankers in February 2017.
- Entered into an agreement to bareboat-in seven Handymax ice-class 1A product tankers for up to two years.
- Paid a quarterly cash dividend on the Company's common stock of $0.125 per share in December 2016.
DVB 2017 Credit Facility
In January 2017, the Company received a commitment for a credit facility of up to $81.4 million from DVB Bank SE (the "DVB 2017 Credit Facility") to refinance its previous facility with DVB Bank SE. The new credit facility will be used to refinance the existing indebtedness on four product tankers, has a final maturity of December 2021, and bears interest at LIBOR plus a margin of 2.75% per annum. The available borrowings may be used to finance up to 63% of the fair market value of the respective vessels.
The remaining terms and conditions, including financial covenants, are similar to those set forth above in the Company's existing credit facilities. The loan facility is subject to customary conditions precedent and the execution of definitive documentation.
2017 Credit Facility
In January 2017, the Company received commitments from a group of financial institutions led by Macquarie Bank Limited (London Branch) for a total loan facility of up to $172.0 million (the "2017 Credit Facility"). The facility includes two commercial tranches for $15.0 million and $25.0 million, a KEXIM Guaranteed Tranche for $48.0 million, a KEXIM Funded Tranche for $52.0 million, and a GIEK Guaranteed Tranche for $32.0 million.
The loan facility is expected to be used to partially finance the purchase of eight MR product tankers that are currently under construction at HMD. Drawdowns will be available at an amount equal to the lower of 60% of the contract price and 60% of the fair market value of each respective vessel. Other key terms are as follows:
The first commercial tranche of $15.0 million has a final maturity of six years from the drawdown date of each vessel, bears interest at LIBOR plus a margin of 2.25% per annum, and has a 15 year repayment profile.
The second commercial tranche of $25.0 million has a final maturity of nine years from the drawdown date of each vessel (assuming KEXIM or GIEK have not exercised their option to call for prepayment of the KEXIM and GIEK funded and guaranteed tranches by the date falling two months prior to the maturity of the first commercial tranche and in the event that the first commercial tranche has not been extended), bears interest at LIBOR plus a margin of 2.25% per annum, and has a 15 year repayment profile.
The KEXIM Funded Tranche and GIEK Guaranteed Tranche have a final maturity of 12 years from the drawdown date of each vessel (assuming the commercial tranches are refinanced through that date), bear interest at LIBOR plus a margin of 2.15% per annum, and have a 12 year repayment profile.
The KEXIM Guaranteed Tranche has a final maturity of 12 years from the drawdown date of each vessel (assuming the commercial tranches are refinanced through that date), bears interest at LIBOR plus a margin of 1.60% per annum, and has a 12 year repayment profile.
The remaining terms and conditions, including financial covenants, are similar to those set forth above in the Company's existing credit facilities. The loan facility is subject to customary conditions precedent and the execution of definitive documentation.
Upsizing of BNP Paribas Credit Facility
In December 2016, the Company upsized its existing credit facility with BNP Paribas by $27.6 million. The $27.6 million increase of the bilateral financing bears interest at LIBOR plus a margin of 2.30% per annum and was used to refinance the existing indebtedness on two MR product tankers (2013 built). In addition, the maturity date of the facility was extended to December 2021. The terms and conditions, including covenants, of the credit facility are similar to those in the Company's existing credit facilities.
HSH Credit Facility
In January 2017, the Company executed a loan facility with HSH Nordbank AG which was fully drawn in February 2017, and the proceeds of $31.1 million were used to refinance the existing indebtedness on two MR product tankers. The facility has a final maturity of five years from the first drawdown date, and bears interest at LIBOR plus a margin of 2.50% per annum. The remaining terms and conditions, including financial covenants, are similar to those in the Company's existing credit facilities.
2011 Credit Facility
As of December 31, 2016, the 2011 Credit Facility, which is scheduled to mature in May 2017, had seven MR product tankers as collateral. Since January 2017, the Company has refinanced two vessels in the BNP Paribas Credit Facility, two vessels in the HSH Credit Facility, and the Company is in discussions to refinance the remaining three vessels.
Time and Bareboat Charter-in Update
In December 2016, the Company entered into agreements to bareboat-in seven Handymax ice-class 1A product tankers. The agreements include purchase options, which can be exercised through December 31, 2018. If the purchase options are not exercised, the bareboat-in agreements expire on March 31, 2019.
Three of the vessels were previously time chartered-in by the Company for $15,600 per day. These time charter-in contracts were cancelled in January 2017 and replaced by the new bareboat contracts at a rate of $7,500 per day. The remaining four vessels will be chartered-in, on a bareboat basis, for $6,000 per day. Two of these vessels were delivered in February 2017 and the remaining two are expected to be delivered within the first quarter of 2017.
In November 2016, the Company extended the time charter-in agreement for an MR product tanker that is currently time chartered-in for an additional year at $13,050 per day effective January 2017. The Company also has an option to extend the charter for an additional year at $15,000 per day.
In October 2016, the Company time chartered-in a 2006 built MR product tanker for one year at $13,500 per day. The Company also has an option to extend the charter for an additional year at $15,000 per day.
$250 Million Securities Repurchase Program
In May 2015, the Company's Board of Directors authorized a Securities Repurchase Program to purchase up to an aggregate of $250 million of the Company's securities, which currently consist of its (i) Convertible Notes, which were issued in June 2014, (ii) Unsecured Senior Notes Due 2020 (NYSE: SBNA), which were issued in May 2014, and (iii) Unsecured Senior Notes Due 2017 (NYSE: SBNB), which were issued in October 2014. As of the date hereof, the Company has the authority to purchase up to an additional $153.3 million of its securities under its Securities Repurchase Program. The Company expects to repurchase its securities in the open market, at times and prices that are considered to be appropriate by the Company, but is not obligated under the terms of the Securities Repurchase Program to repurchase any of its securities.
Since January 1, 2016 through the date of this press release, the Company has repurchased its securities as follows:
- An aggregate of 2,956,760 of its common shares at an average price of $5.58 per share; the repurchased shares are being held as treasury shares. There were 174,629,755 shares outstanding as of February 10, 2017.
- $10.0 million aggregate principal amount of its Convertible Notes at an average price of $839.28 per $1,000 principal amount.
Conference Call
The Company will have a conference call on February 13, 2017 at 9:00 AM Eastern Standard Time and 3:00 PM Central European Time.
Participants should dial into the call 10 minutes before the scheduled time using the following numbers: 888-417-8527 (U.S.) or 719-325-2439 (International). The conference participant passcode is 5057068. The information provided on the teleconference is only accurate at the time of the conference call, and the Company will take no responsibility for providing updated information.
Slides and Audio Webcast:
There will also be a simultaneous live webcast over the internet, through the Scorpio Tankers Inc. website www.scorpiotankers.com. Participants to the live webcast should register on the website approximately 10 minutes prior to the start of the webcast.
Webcast URL: https://www.webcaster4.com/Webcast/Page/610/19558
Current Liquidity
As of February 10, 2017, the Company had $91.5 million in cash.
Debt
Set forth below is a summary of the Company's outstanding indebtedness as of the dates presented:
---------- ----------- --------------------
Availabil-
Outstand- Drawdowns Outstand- Drawdowns Outstand- ity as of
In millions ing as of and ing as of and ing as of February
of U.S. September repaym- December repaym- February 10, 2017
dollars 30, 2016 ents, net 31, 2016 ents, net 10, 2017 (5)
---------------------------------------------------------------
2011 Credit
Facility
(1) $ 95.0 $ (2.0) $ 93.0 (50.0) $ 43.0 -
K-Sure
Credit
Facility 317.4 (3.3) 314.1 (14.9) 299.2 -
KEXIM Credit
Facility 366.6 - 366.6 (4.3) 362.3 -
ING Credit
Facility 126.5 (2.2) 124.3 (1.1) 123.2 -
ABN AMRO
Credit
Facility 132.7 (6.4) 126.3 (1.7) 124.6 -
BNP Paribas
Credit
Facility
(2) 32.8 (0.6) 32.2 27.6 59.8 -
Credit
Suisse
Credit
Facility
(3) - - - 29.4 29.4 30.6
Scotiabank
Credit
Facility 32.7 (0.6) 32.1 - 32.1 -
NIBC Credit
Facility 40.8 (1.0) 39.8 (1.0) 38.8 -
2016 Credit
Facility 288.0 (6.8) 281.2 - 281.2 -
DVB Credit
Facility 90.0 (1.6) 88.4 - 88.4 -
HSH Credit
Facility
(4) - - - 31.1 31.1 -
2020 senior
unsecured
notes 53.8 - 53.8 - 53.8 -
2017 senior
unsecured
notes 51.8 - 51.8 - 51.8 -
Convertible
Notes 348.5 - 348.5 - 348.5 -
------------------- -------------------- --------------------
$ 1,976.6 $ (24.5) $ 1,952.1 $ 15.1 $ 1,967.2 $ 30.6
=================== ==================== ====================
(1) Activity for the 2011 Credit Facility includes the following repayments
in connection with the refinancing of outstanding borrowings thereunder
(i) $13.0 million related to STI Sapphire, which was refinanced in
January 2017, (ii) $13.3 million related to STI Emerald, which was
refinanced in February 2017, (iii) $13.7 million related to STI
Duchessa, which was refinanced in February 2017, and (iv) $10.1 million
related to STI Onyx, which was refinanced in February 2017.
(2) In December 2016, the Company upsized its existing credit facility with
BNP Paribas by $27.6 million. The upsized loan facility was fully drawn
in January and February 2017, and the aggregate proceeds of $27.6
million were used to refinance the existing indebtedness on STI Sapphire
and STI Emerald, which were previously financed under the 2011 Credit
Facility.
(3) In February 2017, the Company took delivery of STI Selatar, an LR2
product tanker from SSME. The Company drew down $29.4 million from this
credit facility to partially finance the delivery of the vessel.
(4) In January 2017, the Company executed a loan facility with HSH Nordbank
AG. The facility has a maturity of five years from the agreement date
and bears interest at LIBOR plus a margin of 2.50% per annum. This
facility was fully drawn in February 2017, and the proceeds were used to
refinance the existing indebtedness on STI Duchessa and STI Onyx, which
were previously financed under the 2011 Credit Facility.
(5) The 2017 Credit Facility and the DVB 2017 Credit Facility will be
included in the schedule upon the execution of the loan documentation.
Newbuilding Program
The Company currently has nine newbuilding vessel orders (eight MRs and one LR2) with HMD and SSME, which the Company refers to as its Newbuilding Program.
During the fourth quarter of 2016, the Company made installment payments of $12.7 million relating to vessels under its Newbuilding Program.
Set forth below are the installment payments that have been made and are expected to be made in the first quarter of 2017 and future installment payments *:
In millions of U.S. dollars
-------------------------------
Q1 2017 - installment payments made to date $ 29.2
Q1 2017 - remaining installment payments 56.3
Q2 2017 32.3
Q3 2017 68.2
Q4 2017 50.5
Q1 2018 21.6
-------------------------------
$ 258.1
===============================
*These are estimates only and are subject to change as construction progresses.
Explanation of Variances on the Fourth Quarter of 2016 Financial Results Compared to the Fourth Quarter of 2015
For the three months ended December 31, 2016, the Company recorded a net loss of $29.7 million compared to net income of $34.2 million for the three months ended December 31, 2015. The following were the significant changes between the two periods:
- Time charter equivalent, or TCE revenue, a Non-IFRS measure, is vessel revenues less voyage expenses (including bunkers and port charges). TCE revenue is included herein because it is a standard shipping industry performance measure used primarily to compare period-to-period changes in a shipping company's performance irrespective of changes in the mix of charter types (i.e., spot charters, time charters, and pool charters), and it provides useful information to investors and management. The following table depicts TCE revenue for the three months ended December 31, 2016 and 2015:
For the three months ended December 31,
---------------------------------------
In thousands of U.S. dollars 2016 2015
------------------- ------------------
Vessel revenue $ 106,068 $ 178,398
Voyage expenses (420) (293)
------------------- ------------------
TCE revenue $ 105,648 $ 178,105
=================== ==================
- TCE revenue decreased $72.5 million to $105.6 million from $178.1 million for the three months ended December 31, 2016 and 2015, respectively. This decrease was driven by a decrease in overall time charter equivalent revenue per day to $12,465 per day from $21,057 for the three months ended December 31, 2016 and 2015, respectively (see the breakdown of daily TCE below). TCE revenue per day decreased across all of our operating segments as persistently high refined product inventories along with a lack of arbitrage opportunities have resulted in reduced global product tanker demand.
- Vessel operating costs decreased $4.0 million to $46.9 million from $50.9 million for the three months ended December 31, 2016 and 2015, respectively. This decrease was driven by a reduction in the number of owned vessels in our fleet to an average of 77.0 vessels from an average of 80.3 vessels for the three months ended December 31, 2016 and 2015, respectively. Additionally, overall vessel operating costs per day decreased to $6,623 per day from $6,891 per day for the three months ended December 31, 2016 and 2015, respectively. This decrease was driven by improvements in our LR2 and MR operating segments (see the breakdown of daily vessel operating costs below).
- Charterhire expense increased $5.3 million to $23.5 million from $18.2 million for the three months ended December 31, 2016 and 2015, respectively. This increase was primarily driven by an increase in the Company's time chartered-in fleet to an average of 15.7 vessels from an average of 11.9 vessels for the three months ended December 31, 2016 and 2015, respectively.
- Depreciation expense decreased slightly by $0.2 million to $30.7 million from $30.9 million for the three months ended December 31, 2016 and 2015, respectively. This decrease was primarily driven by the mix of the Company's vessels as the average number of owned MRs decreased to 42.0 from 47.0 for the three months ended December 31, 2016 and 2015, respectively, as a result of the sales of five MRs during the first and second quarters of 2016. This decrease was partially offset by an increase in the average number of owned LR2s to 21.0 from 19.0 for the three months ended December 31, 2016 and 2015, respectively, as a result of the deliveries of two LR2s under our Newbuilding Program during the first and second quarters of 2016.
- General and administrative expenses decreased $5.9 million to $12.3 million from $18.2 million for the three months ended December 31, 2016 and 2015, respectively. This decrease was primarily driven by reductions in compensation expense (which includes a reduction in restricted stock amortization).
- Financial expenses decreased $2.5 million to $21.7 million from $24.1 million for the three months ended December 31, 2016 and 2015, respectively. The decrease was primarily the result of a decrease in interest expense as the average debt outstanding decreased to $1.9 billion from $2.1 billion for the three months ended December 31, 2016 and 2015, respectively. Additionally, we recorded a $0.7 million write-off of deferred financing fees during the three months ended December 31, 2015. We did not record any write-offs of deferred financing fees during the three months ended December 31, 2016.
- Unrealized gains and losses on derivative financial instruments relate to the change in the fair value of the profit or loss agreement on one of the Company's time chartered-in vessels with a third party who neither owns nor operates the vessel.
Scorpio Tankers Inc. and Subsidiaries
Condensed Consolidated Statement of Income
(unaudited)
For the three months ended For the year ended
December 31, December 31,
-------------------------- --------------------------
In thousands of U.S.
dollars except per
share and share
data 2016 2015 2016 2015
------------ ------------ ------------ ------------
Revenue
Vessel revenue $ 106,068 $ 178,398 $ 522,747 $ 755,711
Operating expenses
Vessel operating
costs (46,933) (50,916) (187,120) (174,556)
Voyage expenses (420) (293) (1,578) (4,432)
Charterhire (23,521) (18,206) (78,862) (96,865)
Depreciation (30,686) (30,874) (121,461) (107,356)
General and
administrative
expenses (12,306) (18,245) (54,899) (65,831)
Loss on sales of
vessels - - (2,078) (35)
Write-off of
vessel purchase
options - (731) - (731)
Gain on sale of
Dorian shares - - - 1,179
------------ ------------ ------------ ------------
Total operating
expenses (113,866) (119,265) (445,998) (448,627)
------------ ------------ ------------ ------------
Operating (loss) /
income (7,798) 59,133 76,749 307,084
------------ ------------ ------------ ------------
Other (expense) and
income, net
Financial expenses (21,667) (24,149) (104,048) (89,596)
Realized gain on
derivative
financial
instruments - - - 55
Unrealized (loss)
/ gain on
derivative
financial
instruments (229) (678) 1,371 (1,255)
Financial income 50 18 1,213 145
Other income
(expenses), net (22) (112) (188) 1,316
------------ ------------ ------------ ------------
Total other
expense, net (21,868) (24,921) (101,652) (89,335)
------------ ------------ ------------ ------------
Net (loss) / income $ (29,666) $ 34,212 $ (24,903) $ 217,749
------------ ------------ ------------ ------------
(Loss) /earnings per
share
Basic $ (0.18) $ 0.21 $ (0.15) $ 1.35
Diluted $ (0.18) $ 0.20 $ (0.15) $ 1.20
Basic weighted
average shares
outstanding 161,868,161 163,792,076 161,118,654 161,436,449
Diluted weighted
average shares
outstanding (1) 161,868,161 202,210,591 161,118,654 199,739,326
(1) The dilutive effect of (i) unvested shares of restricted stock and (ii) the potentially dilutive securities relating to our Convertible Notes were excluded from the computation of diluted earnings per share for the three months and year ended December 31, 2016 because their effect would have been anti-dilutive. Weighted average shares under the if-converted method (which includes the potential dilutive effect of both the unvested shares of restricted stock and our Convertible Notes) were 199,834,980 and 199,965,014 for the three months and year ended December 31, 2016, respectively.
Scorpio Tankers Inc. and Subsidiaries
Condensed Consolidated Balance Sheets
(unaudited)
As of
--------------------------
December 31, December 31,
In thousands of U.S. dollars 2016 2015
------------ ------------
Assets
Current assets
Cash and cash equivalents $ 99,887 $ 200,970
Accounts receivable 42,329 69,017
Prepaid expenses and other current assets 9,067 3,585
Derivative financial instruments 116 -
Inventories 6,122 6,575
------------ ------------
Total current assets 157,521 280,147
------------ ------------
Non-current assets
Vessels and drydock 2,913,254 3,087,753
Vessels under construction 137,917 132,218
Other assets 21,495 23,337
------------ ------------
Total non-current assets 3,072,666 3,243,308
------------ ------------
Total assets $ 3,230,187 $ 3,523,455
============ ============
Current liabilities
Current portion of long-term debt $ 353,012 $ 124,503
Finance lease liability - 53,372
Accounts payable 9,282 25,683
Accrued expenses 23,024 32,643
Derivative financial instruments - 1,175
------------ ------------
Total current liabilities 385,318 237,376
------------ ------------
Non-current liabilities
Long-term debt 1,529,669 1,872,114
Derivative financial instruments - 80
------------ ------------
Total non-current liabilities 1,529,669 1,872,194
------------ ------------
Total liabilities 1,914,987 2,109,570
------------ ------------
Shareholders' equity
Issued, authorized and fully paid-in share
capital:
Share capital 2,247 2,224
Additional paid-in capital 1,756,769 1,729,314
Treasury shares (443,816) (427,311)
Retained earnings - 109,658
------------ ------------
Total shareholders' equity 1,315,200 1,413,885
------------ ------------
Total liabilities and shareholders' equity $ 3,230,187 $ 3,523,455
============ ============
Scorpio Tankers Inc. and Subsidiaries
Condensed Consolidated Statement of Cash Flows
(unaudited)
For the year ended
December 31,
--------------------------
In thousands of U.S. dollars 2016 2015
------------ ------------
Operating activities
Net (loss) / income $ (24,903) $ 217,749
Gain on sale of Dorian shares - (1,179)
Loss on sales of vessels 2,078 35
Write-off of vessel purchase options - 731
Depreciation 121,461 107,356
Amortization of restricted stock 30,207 33,687
Amortization of deferred financing fees 28,628 17,418
Unrealized (gain)/loss on derivative financial
instruments (1,371) 1,255
Amortization of acquired time charter contracts 65 513
Accretion of Convertible Notes 11,562 11,096
Gain on repurchase of Convertible Notes (994) (46)
------------ ------------
166,733 388,615
------------ ------------
Changes in assets and liabilities:
Decrease / (increase) in inventories 564 (1,909)
Decrease in accounts receivable 26,688 9,184
Increase in prepaid expenses and other current
assets (5,546) (1,615)
Decrease / (increase) in other assets 2,045 (14,153)
(Decrease) / increase in accounts payable (2,487) 775
(Decrease) / increase in accrued expenses (9,486) 11,206
Interest rate swap termination payment - (128)
------------ ------------
11,778 3,360
------------ ------------
Net cash inflow from operating activities 178,511 391,975
------------ ------------
Investing activities
Acquisition of vessels and payments for vessels
under construction (126,842) (905,397)
Proceeds from disposal of vessels 158,175 90,820
Proceeds from sale of Dorian shares - 142,436
Deposit returned for vessel purchases - (31,277)
------------ ------------
Net cash inflow / (outflow) from investing
activities 31,333 (703,418)
------------ ------------
Financing activities
Debt repayments (753,431) (226,260)
Issuance of debt 565,028 643,550
Debt issuance costs (10,679) (8,497)
Repayment of Convertible Notes (8,393) (1,632)
Gross proceeds from issuance of common stock - 159,747
Equity issuance costs (24) (7,554)
Dividends paid (86,923) (87,056)
Repurchase of common stock (16,505) (76,028)
------------ ------------
Net cash (outflow) / inflow from financing
activities (310,927) 396,270
------------ ------------
(Decrease) / increase in cash and cash
equivalents (101,083) 84,827
Cash and cash equivalents at January 1, 200,970 116,143
------------ ------------
Cash and cash equivalents at December 31, $ 99,887 $ 200,970
============ ============
Scorpio Tankers Inc. and Subsidiaries
Other operating data for the three months and year ended December 31, 2016
and 2015
(unaudited)
For the three months For the year ended
ended December 31, December 31,
--------------------- ---------------------
2016 2015 2016 2015
---------- ---------- ---------- ----------
Adjusted EBITDA(1) (in thousands
of U.S. dollars) $ 29,997 $ 99,520 $ 230,307 $ 449,084
Average Daily Results
Time charter equivalent per
day(2) $ 12,465 $ 21,057 $ 15,783 $ 23,163
Vessel operating costs per
day(3) $ 6,623 $ 6,891 $ 6,576 $ 6,564
Aframax/LR2
TCE per revenue day (2) $ 14,523 $ 26,464 $ 20,280 $ 30,544
Vessel operating costs per
day(3) $ 6,916 $ 7,330 $ 6,734 $ 6,865
Average number of owned vessels 21.0 19.0 20.3 14.6
Average number of time
chartered-in vessels 2.0 2.1 2.0 4.0
Panamax/LR1
TCE per revenue day (2) $ 14,856 $ 21,013 $ 17,277 $ 21,804
Vessel operating costs per
day(3) - - - $ 8,440
Average number of owned vessels - - - 0.7
Average number of time
chartered-in vessels 1.0 2.2 0.9 3.9
MR
TCE per revenue day (2) $ 11,981 $ 19,681 $ 14,898 $ 21,803
Vessel operating costs per
day(3) $ 6,510 $ 6,838 $ 6,555 $ 6,461
Average number of owned vessels 42.0 47.0 43.4 42.6
Average number of time
chartered-in vessels 7.7 4.0 5.2 3.6
Handymax
TCE per revenue day (2) $ 11,129 $ 18,562 $ 12,615 $ 19,686
Vessel operating costs per
day(3) $ 6,522 $ 6,483 $ 6,404 $ 6,473
Average number of owned vessels 14.0 14.3 14.0 14.8
Average number of time
chartered-in vessels 5.0 3.6 4.6 5.4
Fleet data
Average number of owned vessels 77.0 80.3 77.7 72.7
Average number of time
chartered-in vessels 15.7 11.9 12.7 16.9
Drydock
Expenditures for drydock (in
thousands of U.S. dollars) - - - -
(1) See Non-IFRS Measures section below.
(2) Freight rates are commonly measured in the shipping industry in terms of
time charter equivalent per day (or TCE per day), which is calculated by
subtracting voyage expenses, including bunkers and port charges, from
vessel revenue and dividing the net amount (time charter equivalent
revenues) by the number of revenue days in the period. Revenue days are
the number of days the vessel is owned less the number of days the
vessel is off-hire for drydock and repairs.
(3) Vessel operating costs per day represent vessel operating costs
excluding non-recurring expenses (for example insurance deductible
expenses for repairs) divided by the number of days the vessel is owned
during the period.
Fleet list as of February 10, 2017
Year Ice
Vessel Name Built DWT class Employment Vessel type
--------------- -------- --------- -------- ---------------- -----------
Owned vessels
1 STI Brixton 2014 38,734 1A SHTP (1) Handymax
2 STI Comandante 2014 38,734 1A SHTP (1) Handymax
3 STI Pimlico 2014 38,734 1A Time Charter (5) Handymax
4 STI Hackney 2014 38,734 1A SHTP (1) Handymax
5 STI Acton 2014 38,734 1A SHTP (1) Handymax
6 STI Fulham 2014 38,734 1A SHTP (1) Handymax
7 STI Camden 2014 38,734 1A SHTP (1) Handymax
8 STI Battersea 2014 38,734 1A SHTP (1) Handymax
9 STI Wembley 2014 38,734 1A SHTP (1) Handymax
10 STI Finchley 2014 38,734 1A SHTP (1) Handymax
11 STI Clapham 2014 38,734 1A SHTP (1) Handymax
12 STI Poplar 2014 38,734 1A Time Charter (5) Handymax
13 STI Hammersmith 2015 38,734 1A SHTP (1) Handymax
14 STI Rotherhithe 2015 38,734 1A SHTP (1) Handymax
15 STI Amber 2012 49,990 - SMRP(2) MR
16 STI Topaz 2012 49,990 - SMRP(2) MR
17 STI Ruby 2012 49,990 - SMRP(2) MR
18 STI Garnet 2012 49,990 - SMRP(2) MR
19 STI Onyx 2012 49,990 - SMRP(2) MR
20 STI Sapphire 2013 49,990 - SMRP(2) MR
21 STI Emerald 2013 49,990 - SMRP(2) MR
22 STI Beryl 2013 49,990 - SMRP(2) MR
23 STI Le Rocher 2013 49,990 - SMRP(2) MR
24 STI Larvotto 2013 49,990 - SMRP(2) MR
25 STI Fontvieille 2013 49,990 - SMRP(2) MR
26 STI Ville 2013 49,990 - SMRP(2) MR
27 STI Duchessa 2014 49,990 - SMRP(2) MR
28 STI Opera 2014 49,990 - SMRP(2) MR
29 STI Texas City 2014 49,990 - SMRP(2) MR
30 STI Meraux 2014 49,990 - SMRP(2) MR
31 STI San Antonio 2014 49,990 - SMRP(2) MR
32 STI Venere 2014 49,990 - SMRP(2) MR
33 STI Virtus 2014 49,990 - SMRP(2) MR
34 STI Aqua 2014 49,990 - SMRP(2) MR
35 STI Dama 2014 49,990 - SMRP(2) MR
36 STI Benicia 2014 49,990 - SMRP(2) MR
37 STI Regina 2014 49,990 - SMRP(2) MR
38 STI St. Charles 2014 49,990 - SMRP(2) MR
39 STI Mayfair 2014 49,990 - SMRP(2) MR
40 STI Yorkville 2014 49,990 - SMRP(2) MR
41 STI Milwaukee 2014 49,990 - SMRP(2) MR
42 STI Battery 2014 49,990 - SMRP(2) MR
43 STI Soho 2014 49,990 - SMRP(2) MR
44 STI Memphis 2014 49,995 - SMRP(2) MR
45 STI Tribeca 2015 49,990 - SMRP(2) MR
46 STI Gramercy 2015 49,990 - SMRP(2) MR
47 STI Bronx 2015 49,990 - SMRP(2) MR
48 STI Pontiac 2015 49,990 - SMRP(2) MR
49 STI Manhattan 2015 49,990 - SMRP(2) MR
50 STI Queens 2015 49,990 - SMRP(2) MR
51 STI Osceola 2015 49,990 - SMRP(2) MR
52 STI Notting
Hill 2015 49,687 1B Time Charter (6) MR
53 STI Seneca 2015 49,990 - SMRP(2) MR
54 STI Westminster 2015 49,687 1B Time Charter (6) MR
55 STI Brooklyn 2015 49,990 - SMRP(2) MR
56 STI Black Hawk 2015 49,990 - SMRP(2) MR
57 STI Elysees 2014 109,999 - SLR2P (4) LR2
58 STI Madison 2014 109,999 - SLR2P (4) LR2
59 STI Park 2014 109,999 - SLR2P (4) LR2
60 STI Orchard 2014 109,999 - SLR2P (4) LR2
61 STI Sloane 2014 109,999 - SLR2P (4) LR2
62 STI Broadway 2014 109,999 - SLR2P (4) LR2
63 STI Condotti 2014 109,999 - SLR2P (4) LR2
64 STI Rose 2015 109,999 - Time Charter (7) LR2
65 STI Veneto 2015 109,999 - SLR2P (4) LR2
66 STI Alexis 2015 109,999 - SLR2P (4) LR2
67 STI Winnie 2015 109,999 - SLR2P (4) LR2
68 STI Oxford 2015 109,999 - SLR2P (4) LR2
69 STI Lauren 2015 109,999 - SLR2P (4) LR2
70 STI Connaught 2015 109,999 - SLR2P (4) LR2
71 STI Spiga 2015 109,999 - SLR2P (4) LR2
72 STI Savile Row 2015 109,999 - SLR2P (4) LR2
73 STI Kingsway 2015 109,999 - SLR2P (4) LR2
74 STI Carnaby 2015 109,999 - SLR2P (4) LR2
75 STI Lombard 2015 109,999 - SLR2P (4) LR2
76 STI Grace 2016 109,999 - SLR2P (4) LR2
77 STI Jermyn 2016 109,999 - SLR2P (4) LR2
78 STI Selatar 2017 109,999 - SLR2P (4) LR2
---------
Total owned
DWT 5,061,233
=========
Daily
Year Ice Employ- Vessel Base Expiry
Vessel Name Built DWT class ment type Rate (8)
------------ ------------------ -------- ------------------ ---------
Time or
bareboat
chartered-in
vessels
79 Kraslava 2007 37,258 1B SHTP (1) Handymax $ 17,000 02-Jun-17
80 Krisjanis
Valdemars 2007 37,266 1B SHTP (1) Handymax $ 17,000 02-Apr-17
81 Silent 2007 37,847 1A SHTP (1) Handymax $ 7,500 21-Mar-19 (9)
82 Single 2007 37,847 1A SHTP (1) Handymax $ 7,500 24-Mar-19 (9)
83 Star I 2007 37,847 1A SHTP (1) Handymax $ 7,500 27-Mar-19 (9)
84 Sky 2008 37,879 1A SHTP (1) Handymax $ 6,000 31-Mar-19(10)
85 Style 2008 37,923 1A SHTP (1) Handymax $ 6,000 31-Mar-19(10)
86 Miss
Mariarosaria 2011 47,499 - SMRP(2) MR $ 16,350 26-May-17
87 Vukovar 2015 49,990 - SMRP(2) MR $ 17,034 01-May-18
88 Targale 2007 49,999 - SMRP(2) MR $ 16,200 17-May-17
89 Zefyros 2013 49,999 - SMRP(2) MR $ 15,800 08-Jul-17(11)
90 Gan-Trust 2013 51,561 - SMRP(2) MR $ 13,050 06-Jan-18(12)
91 CPO New
Zealand 2011 51,717 - SMRP(2) MR $ 15,250 12-Sep-18(12)
92 CPO
Australia 2011 51,763 - SMRP(2) MR $ 15,250 01-Sep-18(13)
93 Ance 2006 52,622 - SMRP(2) MR $ 13,500 12-Oct-17(14)
94 Hellespont
Progress 2006 73,728 - SPTP (3) LR1 $ 17,250 13-Apr-17
95 Densa SLR2P
Alligator 2013 105,708 - (4) LR2 $ 18,500 17-Feb-17(15)
--------
Total time
chartered-in
DWT 848,453
========
Newbuildings currently
under construction
Vessel Name Yard DWT Vessel type
------------------------- --------- --------- -----------
96 Hull 2601 - TBN STI
Galata HMD (16) 52,000 MR
97 Hull 2602 - TBN STI
Bosphorus HMD (16) 52,000 MR
98 Hull 2603 - TBN STI
Leblon HMD (16) 52,000 MR
99 Hull 2604 - TBN STI La
Boca HMD (16) 52,000 MR
100 Hull 2605 - TBN STI San
Telmo HMD (16) 52,000 MR
101 Hull 2606 - TBN STI
Jurere HMD (16) 52,000 MR
102 Hull 2607 - TBN STI Esles
II HMD (16) 52,000 MR
103 Hull 2608 - TBN STI
Jardins HMD (16) 52,000 MR
104 Hull S3121 - TBN STI
Rambla SSME (17) 109,999 LR2
---------
Total newbuilding product
tankers DWT 525,999
=========
---------
Total Fleet DWT 6,435,685
=========
(1) This vessel operates in or is expected to operate in the Scorpio
Handymax Tanker Pool (SHTP). SHTP is operated by Scorpio Commercial
Management (SCM). SHTP and SCM are related parties to the Company.
(2) This vessel operates in or is expected to operate in the Scorpio MR
Pool (SMRP). SMRP is operated by SCM. SMRP is a related party to the
Company.
(3) This vessel operates in or is expected to operate in the Scorpio
Panamax Tanker Pool (SPTP). SPTP is operated by SCM. SPTP is a related
party to the Company.
(4) This vessel operates in or is expected to operate in the Scorpio LR2
Pool (SLR2P). SLR2P is operated by SCM. SLR2P is a related party to the
Company.
(5) This vessel is currently time chartered-out to an unrelated third-party
for three years at $18,000 per day. This time charter is scheduled to
expire in January 2019.
(6) This vessel is currently time chartered-out to an unrelated third-party
for three years at $20,500 per day. This time charter is scheduled to
expire in December 2018.
(7) This vessel is currently time chartered-out to an unrelated third-party
for three years at $28,000 per day. This time charter is scheduled to
expire in February 2019.
(8) Redelivery from the charterer is plus or minus 30 days from the expiry
date.
(9) In December 2016, we entered into an agreement to bareboat-in this
vessel, which was previously time chartered-in by the Company for
$15,600 per day. The time charter-in contract was cancelled in January
2017 and replaced by the new bareboat contract at a rate of $7,500 per
day. The agreement includes a purchase option which can be exercised
through December 31, 2018. If the purchase option is not exercised, the
bareboat-in agreement will expire on March 31, 2019. This vessel was
delivered under the bareboat agreement in January 2017.
(10) In December 2016, we entered into an agreement to bareboat-in this
vessel at a rate of $6,000 per day. The agreement includes a purchase
option which can be exercised through December 31, 2018. If the
purchase option is not exercised, the bareboat-in agreement will expire
on March 31, 2019. This vessel was delivered under the bareboat
agreement in February 2017.
(11) We have an option to extend the charter for an additional year at
$17,000 per day.
(12) In November 2016, we entered into a new charter agreement for one year
at $13,050 per day effective January 2017. We have an option to extend
the charter for an additional year at $15,000 per day.
(13) We have an option to extend the charter for an additional year at
$16,000 per day.
(14) We have an option to extend the charter for an additional year at
$15,000 per day.
(15) We have an option to extend the charter for an additional six months at
$20,550 per day.
(16) These newbuilding vessels are being constructed at HMD (Hyundai Mipo
Dockyard Co. Ltd. of South Korea). Seven vessels are expected to be
delivered throughout 2017 and one vessel is expected to be delivered in
the first quarter of 2018.
(17) This newbuilding vessel is being constructed at SSME (Sungdong
Shipbuilding & Marine Engineering Co., Ltd). This vessel is expected to
be delivered in the first quarter of 2017.
Dividend Policy
The declaration and payment of dividends is subject at all times to the discretion of the Company's Board of Directors. The timing and amount of dividends, if any, depends on the Company's earnings, financial condition, cash requirements and availability, fleet renewal and expansion, restrictions in the loan agreements, the provisions of Marshall Islands law affecting the payment of dividends and other factors.
The Company's dividends paid during 2015 and 2016 were as follows:
Date paid Dividends per share
-----------------------------------------
March 2015 $0.120
June 2015 $0.125
September 2015 $0.125
December 2015 $0.125
March 2016 $0.125
June 2016 $0.125
September 2016 $0.125
December 2016 $0.125
On February 13, 2017, the Company's Board of Directors declared a quarterly cash dividend of $0.01 per share, payable on or about March 30, 2017 to all shareholders as of February 23, 2017 (the record date). As of February 10, 2017, there were 174,629,755 shares outstanding.
Securities Repurchase Program
In May 2015, the Company's Board of Directors authorized a new Securities Repurchase Program to purchase up to an aggregate of $250 million of the Company's securities, which currently consist of its (i) Convertible Notes, which were issued in June 2014, (ii) Unsecured Senior Notes Due 2020 (NYSE: SBNA), which were issued in May 2014, and (iii) Unsecured Senior Notes Due 2017 (NYSE: SBNB), which were issued in October 2014. As of the date hereof, the Company has the authority to purchase up to an additional $153.3 million of its securities under its Securities Repurchase Program. The Company expects to repurchase any securities in the open market, at times and prices that are considered to be appropriate by the Company, but is not obligated under the terms of the Securities Repurchase Program to repurchase any securities.
Since January 1, 2016 through the date of this press release, the Company has repurchased its securities as follows:
- An aggregate of 2,956,760 of its common shares at an average price of $5.58 per share; the repurchased shares are being held as treasury shares. There were 174,629,755 shares outstanding as of February 10, 2017.
- $10.0 million aggregate principal amount of its Convertible Notes at an average price of $839.28 per $1,000 principal amount.
About Scorpio Tankers Inc.
Scorpio Tankers Inc. is a provider of marine transportation of petroleum products worldwide. Scorpio Tankers Inc. currently owns 78 product tankers (22 LR2, 14 Handymax, and 42 MR tankers) with an average age of 2.2 years and time or bareboat charters-in 17 product tankers (one LR2, one LR1, eight MR and seven Handymax tankers). The Company has contracted for nine newbuilding product tankers (eight MR and a LR2 tanker). The LR2 is expected to be delivered in the first quarter of 2017 and the eight MRs are expected to be delivered throughout 2017 and the first quarter of 2018. Additional information about the Company is available at the Company's website www.scorpiotankers.com, which is not a part of this press release.
Non-IFRS Measures
Reconciliation of IFRS Financial Information to Non-IFRS Financial Information
This press release describes adjusted net income and adjusted EBITDA, which are not measures prepared in accordance with IFRS (i.e. "Non-IFRS" measures). The Non-IFRS measures are presented in this press release as we believe that they provide investors with a means of evaluating and understanding how the Company's management evaluates the Company's operating performance. These Non-IFRS measures should not be considered in isolation from, as substitutes for, or superior to financial measures prepared in accordance with IFRS.
The Company believes that the presentation of adjusted net income with adjusted earnings per share, basic and diluted, and adjusted EBITDA are useful to investors because they facilitate the comparability and the evaluation of companies in the Company's industry. In addition, the Company believes that adjusted net income with adjusted earnings per share, basic and diluted, and adjusted EBITDA are useful in evaluating its operating performance compared to that of other companies in the Company's industry. The Company's definitions of adjusted net income with the adjusted earnings per share, basic and diluted, and adjusted EBITDA may not be the same as reported by other companies in the shipping industry or other industries.
Reconciliation of Net Income to Adjusted Net Income
For the three months ended
December 31, 2016
-------------------------------
In thousands of U.S. dollars except per Per share Per share
share data Amount basic diluted
--------- --------- ---------
Net loss $ (29,666) $ (0.18) $ (0.18)
Adjustments:
Unrealized loss on derivative financial
instruments 229 0.00 0.00
--------- --------- ---------
Adjusted net loss $ (29,437) $ (0.18) $ (0.18)
========= ========= =========
For the three months ended
December 31, 2015
--------------------------------
In thousands of U.S. dollars except per Per share Per share
share data Amount basic diluted
---------- ---------- ----------
Net income $ 34,212 $ 0.21 $ 0.20
Adjustments:
Deferred financing fees write-off 720 0.00 0.00
Write-off of vessel purchase options 731 0.00 0.00
Unrealized loss on derivative financial
instruments 678 0.00 0.00
---------- ---------- ----------
Adjusted net income $ 36,341 $ 0.22 (1) $ 0.21 (1)
========== ========== ==========
(1) Summation differences due to rounding
For the year ended December 31,
2016
-------------------------------
In thousands of U.S. dollars except per Per share Per share
share data Amount basic diluted
--------- --------- ---------
Net loss $ (24,903) $ (0.15) $ (0.15)
Adjustments:
Deferred financing fees write-off 14,479 0.09 0.09
Unrealized gain on derivative financial
instruments (1,371) (0.01) (0.01)
Gain on repurchase of Convertible Notes (994) (0.01) (0.01)
Loss on sales of vessels 2,078 0.01 0.01
--------- --------- ---------
Adjusted net loss $ (10,711) $ (0.07) $ (0.07)
========= ========= =========
For the year ended December 31,
2015
-------------------------------
In thousands of U.S. dollars except per Per share Per share
share data Amount basic diluted
--------- --------- ---------
Net income $ 217,749 $ 1.35 $ 1.20
Adjustments:
Deferred financing fees write-off 2,730 0.02 0.01
Gain on sale of Dorian shares (1,179) (0.01) (0.01)
Write-down of vessel held for sale and
loss on sales of vessels 35 0.00 0.00
Gain on early termination of time
chartered-in contract (1,397) (0.01) (0.01)
Reserve for pool bunker supplier in
bankruptcy 1,396 0.01 0.01
Unrealized loss on derivative financial
instruments 1,255 0.01 0.01
Gain on repurchase of Convertible Notes (46) 0.00 0.00
Write-off of vessel purchase options 731 0.00 0.00
--------- --------- ---------
Adjusted net income $ 221,274 $ 1.37 $ 1.21
========= ========= =========
Reconciliation of Net Income to Adjusted EBITDA
For the three months For the year ended
ended December 31, December 31,
---------------------- --------------------
In thousands of U.S. dollars 2016 2015 2016 2015
---------- ---------- --------- ---------
Net (loss) / income $ (29,666) $ 34,212 $ (24,903) $ 217,749
Financial expenses 21,667 24,149 104,048 89,596
Unrealized loss / (gain)
on derivative financial
instruments 229 678 (1,371) 1,255
Financial income (50) (18) (219) (145)
Depreciation 30,686 30,874 121,461 107,356
Amortization of restricted
stock 7,131 8,894 30,207 33,687
Write-off of vessel
purchase options - 731 - 731
Gain on sale of Dorian
shares - - - (1,179)
Loss on sales of vessels - - 2,078 35
Gain on repurchase of
Convertible Notes - - (994) -
Gain on early termination
of time chartered-in
contract - - - (1,397)
Reserve for pool bunker
supplier in bankruptcy - - - 1,396
---------- ---------- --------- ---------
Adjusted EBITDA $ 29,997 $ 99,520 $ 230,307 $ 449,084
========== ========== ========= =========
Forward-Looking Statements
Matters discussed in this press release may constitute forward-looking statements. The Private Securities Litigation Reform Act of 1995 provides safe harbor protections for forward-looking statements in order to encourage companies to provide prospective information about their business. Forward-looking statements include statements concerning plans, objectives, goals, strategies, future events or performance, and underlying assumptions and other statements, which are other than statements of historical facts. The Company desires to take advantage of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995 and is including this cautionary statement in connection with this safe harbor legislation. The words "believe," "anticipate," "intends," "estimate," "forecast," "project," "plan," "potential," "may," "should," "expect," "pending" and similar expressions identify forward-looking statements.
The forward-looking statements in this press release are based upon various assumptions, many of which are based, in turn, upon further assumptions, including without limitation, our management's examination of historical operating trends, data contained in our records and other data available from third parties. Although we believe that these assumptions were reasonable when made, because these assumptions are inherently subject to significant uncertainties and contingencies which are difficult or impossible to predict and are beyond our control, we cannot assure you that we will achieve or accomplish these expectations, beliefs or projections. We undertake no obligation, and specifically decline any obligation, except as required by law, to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
In addition to these important factors, other important factors that, in our view, could cause actual results to differ materially from those discussed in the forward-looking statements include the failure of counterparties to fully perform their contracts with us, the strength of world economies and currencies, general market conditions, including fluctuations in charter rates and vessel values, changes in demand for tanker vessel capacity, changes in our operating expenses, including bunker prices, drydocking and insurance costs, the market for our vessels, availability of financing and refinancing, charter counterparty performance, ability to obtain financing and comply with covenants in such financing arrangements, changes in governmental rules and regulations or actions taken by regulatory authorities, potential liability from pending or future litigation, general domestic and international political conditions, potential disruption of shipping routes due to accidents or political events, vessels breakdowns and instances of off-hires and other factors. Please see our filings with the Securities and Exchange Commission for a more complete discussion of these and other risks and uncertainties.
Scorpio Tankers Inc.212-542-1616
Source: Scorpio Tankers Inc.